EXCERPT: “Multifamily rents in the U.S. rose slightly in April, although the rate of growth fell below the long-term average, according to data compiled in the most recent survey of 121 markets by Yardi ® Matrix. Average U.S. rents rose $3 during the month to $1,314, an increase of 2% but well below the 5.5% growth rate of a year ago and the lowest year-over- year percentage increase since April 2011. The figures are expected, the report says, “given the rapid increase in supply and the inevitable return to growth that is more in line with income gains.” According to the report, “Rents have (in most metros and most segments) far exceeded the rate of income growth in recent years, when the number of renters increased rapidly while supply nosedived in the wake of the last recession. Now rents are peaking and have become difficult to afford for the average resident in many metros, while supply is at cyclical peaks.” Three California real estate markets led year-over- year rent growth in April: Sacramento, the Inland Empire and Los Angeles. Others in the top five were Minnesota’s Twin Cities and Seattle.” FULL STORY: http://bit.ly/2pNUjK8

Rent hikes are the result of tax increases and rising property values, say landlords according a new story in the Star Tribune. Adam Belz reports that new contemporary, luxury-style apartment units are being built by the thousands, and have had a major impact assessed values of other apartment buildings. Higher values, means migher taxes, and therefore higher rents

While Minneapolis’ market value of apartments has more than doubled since 2012, building owners can receive tax breaks should they provide affordable units or develop in a tax increment financing district. For those who do not fall in that category, tax bills have risen drastically.

To find an agreeable middle ground for both renters and landlords, city council members have been hard at work mulling solutions to the raising costs of apartments. Aside from section 8 housing, council members have suggested updating the zoning codes, which would allow for smaller apartment buildings that create healthy market competition and provide for better price control. If Minneapolis is to avoid a renter situation similar to New York or San Francisco, more construction must take place and vacancies must be higher.

The Minnesota Multi-Housing Association opposes all of the possible proposals.

Minnesota is one of the most expensive locations for renters in the Midwest as we see increases in rent prices and decreases in median income since 2000. While data shows that minimum wage earners struggle to afford an unattainable rent; 14,000 men, women and children remain homeless in Minnesota.

To combat these harsh realities, Aeon was formed in 1986 by the Central Community Housing Trust to address the demolition of 350 units while the Minneapolis Convention Center was built. Almost 30 years later, Aeon helps to house 4,500 residents in 42 unique buildings including seniors, families and homeless.

With locations in the greater Minneapolis and St. Paul area, Aeon is fueled largely by donations, most of which come from their annual Beyond Bricks and Mortars breakfast fundraiser. Their 2016 edition of the fundraiser took in $538,883.

An ordinance was passed in West St. Paul during November that restricts where some disabled people who receive government rental assistance can live, barring them from zones that prospect apartments and townhouses in the future.

The Star Tribune reports that while disability advocates cite the ordinance as discriminatory and Dakota County officials say that the result severely restricts choice for the disabled; West St. Paul officials claim that police officers have been overburdened by calls from apartment complexes where those who qualify for support services live.

These residents might be mentally ill, physically or mentally disabled, recovering addicts or elderly according to Minnesota’s laws on financial assistance. Dakota County lists around 400 seniors and 100 disabled people that live in registered housing within West St. Paul.

City attorneys see the issue not as a restriction on civil liberties, but rather as a regulation on private business. With claims of misallocating police resources on one side and discrimination on the other, West St. Paul finds itself in a contentious debate.

$7.7 million in apartment and infrastructure developments are up for funding and a vote by the Metropolitan Council on Dec 14.

The Star Tribune reports on the vote, which decides if the Living Communities Demonstration Account (LCDA) grant recommendations for the developments to the Met Council will be approved. If approved, the grant recommendations would help to fund eight proposed private developments in the Twin Cities area.

With plans to develop four buildings in St. Paul, one in Bloomington, one in Hastings and two in Minneapolis; the proposed plans aim to bring 1,627 living units and 92 permanent jobs to the greater Twin Cities area.

“The Met Council is working in partnership with property owners and residents in a program called the Community Choice Housing Assistance Program. The program will offer training and other services to both residents and property owners.

The opposite is happening in Minneapolis. Glidden has insisted upon leading the charge on an ordinance without doing her homework.

As with most regulated industries, the regulation of housing is complex, and the U.S. Department of Housing and Urban Development’s programs are even more complex than local initiatives.

There are 100,000 units of rental housing in the city of Minneapolis, with more apartments being built. The Glidden effort would make participation mandatory for all Minneapolis properties. It would create longer wait times for residents looking for housing by imposing onerous bureaucratic inspections on an already-stretched staff. And it would further concentrate housing disparities that the Met Council aims to disperse throughout its new initiative.” READ MORE: http://strib.mn/1UNV8Ha

EXCERPT: “The Metropolitan Council, which operates the largest housing and redevelopment authority in the state and has 6,300 housing voucher holders, launched its Community Choice program in December.

It’s aimed at families with children under the age of 10 that receive federal housing vouchers and want to move into “areas of opportunity” — places with good schools and lower poverty levels. The families spend 30 to 40 percent of their income on rent and use vouchers to cover the balance.

The first family in the program signed a lease last week, with plans to move into an Anoka County neighborhood. Three other families also are close to rental agreements in “areas of opportunity.”” FULL STORY: http://strib.mn/24Icexx